Brokerage Services
At Expert Customs Brokers we understand the importance swift customs clearance
can play in the success of a business. That's why we employ the industry's best
trained and most experienced people, and utilize the most advanced release systems
available to ensure you and your customers always receive the fastest, most efficient
releases possible 24 hours a day. Equally important, when you partner with us
we can customize our processes to specifically match your requirements so that
you're always assured of getting the service you need, when you need it. So give
us a call, and discover the advantage of going cross border with an Expert.
FAQs re: Customs Self Assessment
What is CSA?
What is ACI?
What is FAST and how does it relate to CSA?
What is the benefit of FAST/CSA?
What are the other benefits of CSA?
What are the accounting benefits?
What are the payment benefits?
Does my company qualify for the CSA program?
How does my company apply for CSA?
What are the internal controls and audit trails required by CSA?
Does my broker still prepare B3s for me in CSA?
What is the CSA role of Expert Customs Brokers?
What is CSA?
CSA stands for Customs Self Assessment.
This is a program designed by Canada Border Services Agency (CBSA) resulting
from their “Customs Action Plan” and
the “Smart Borders Initiative”. CBSA is dividing all importers into
two groups – low risk and high risk. Low risk importers may be eligible
for CSA. All other importers will be considered higher risks and must use another
new program – Advance Commercial Information (ACI). The principle is
that CSA importers have been pre-screened for security issues, have excellent
internal
controls, are customs compliant and, therefore, represent a low risk of offending
or being a security risk.
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What is ACI?
ACI is a new program being phased in over several years by mode of transport
into Canada. Ocean, air, rail and truck modes are to be phased in by the end
of 2006. Truck mode will be the final phase. ACI requires carriers to file
data electronically prior to the goods entry into Canada. Eventually all trade
data
will be required prior to entry, compared to the current requirement for data
on the five highest value items. If the information is not presented, the goods
will be stopped at the border. According to CBSA, goods will not be allowed
to enter Canada in bond once the system is in place. Any importer who is not
in
the CSA program must follow the rules of ACI. ACI shipments will be subject
to an “intensified process for unknown or higher risk”.
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What is FAST and how does it relate to CSA?
FAST is the acronym for “Free and Secure Trade”. This is a joint
Canada – U.S.A. program involving the CBSA, Citizenship and Immigration
Canada and U.S. Customs and Border Protection (CBP). FAST builds on the
CSA program and its principles of pre-approval and self-assessment. It
also builds
upon the
enhanced security measures of the Partners-in-Protection (PIP) program.
In order to qualify for the FAST program an importer into Canada must be
CSA
and PIP certified.
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What is the benefit of FAST/CSA?
Importers who qualify for FAST can use the FAST lanes at certain border
crossings for expedited entry into Canada. Similarly, importers into
the U.S.A who
are C-TPAT approved may use the FAST lanes into that country. This is
of particular
benefit to importers of truckload shipments. Less-than-truckload (LTL)
shipments do not qualify for the FAST lane unless the entire load is
for CSA approved
importers. Also, the carrier and driver must be CSA approved. Most carriers
are already
approved and thousands of their drivers are approved or have applied
for approval.
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What are the other benefits of CSA?
Once you are CSA approved you have the option of using the FAST lanes at
the border. But there are also many other benefits. The three main areas
of benefits
are border clearance, trade data and adjustment reporting (accounting), and
revenue (GST and duties) reporting and payment.
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What are the accounting benefits?
CSA is an EDI based program. It allows the importer to report its own trade
data after entry into Canada. The importer controls the reporting of its
data and
any adjustments. The result is greater compliance because errors and omission
are self-corrected. The data is reported after receipt and verification of
quantity, price and origin. You are also given a longer period to report
and may choose
from two different accounting schedules to better suit your systems. The
reporting is triggered from your own system based upon internal controls
agreed upon
with the CBSA.
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What are the payment benefits?
CSA importers report the amounts owing to the CBSA by means of a new
form, the Revenue Summary Form (RSF). The form is completed and the
total due
is paid at
the financial institution of your choosing. Any claims you have for
adjustments (X Types) are netted on the form so you receive immediate
credit for
your refund or drawback claims. CBSA will respond more quickly and
electronically to your
adjustment requests. Your broker no longer has to “handle your
payments to the government.
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Does my company qualify for the CSA program?
In order to qualify for CSA your company must:
• Be a resident in Canada;
• Have a two year record of actively importing;
• Be without contraband or major commercial infractions;
• Be prepared to invest in your business systems; and
• Provide senior management commitment that your business processes and
systems will support CSA program requirements.
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How does my company apply for CSA?
The CSA program has a three-part application process. Part I is the
information sharing and risk assessment phase. In this way CBSA will
advise you
of your eligibility before you invest further time or money. Part II
is the
documentation
of your
business processes and audit trails that will support the CSA program.
This part may require you to make or propose some changes to your controls
and
systems in order to comply with CBSA’s requirements. Part III
is the undertaking to be signed by senior management committing to
the CSA
program
requirements.
Expert Customs Brokers can help you with each Part of the application
process.
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What are the internal controls and audit trails required by CSA?
Most, if not all, of the internal controls required to qualify for
CSA already exist in most companies business systems. CBSA wants
to know
that all import
transactions are identified and reported on a regular basis. They
put particular emphasis on the matching of purchase orders, receiving
documents
and invoices
for accounts payable approval. Ideally, when this match occurs is
the time the system should report an import transaction. However,
there
is flexibility
in
their approach so long as sufficient controls exist. It is this linkage
that also provides the audit trail they require. They also need to
know that your
system captures unusual occurrences, such as adjustments to invoices,
receipt of unsolicited goods, overs and shorts, to name a few. These
are all normally
captured by a company’s internal controls.
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Does my broker still prepare B3s for me in CSA?
Yes. You are still required to file B3s and your broker will continue to
file these for you. If you are an Expert Customs Brokers customer, we have
a CSA
EDI link to receive the B3 information. We review the data for correctness
of classification,
origin, and value the same way we do when we receive hard copy. We continue
to report the data to CBSA using our EDI link with them.
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What is the CSA role of Expert Customs Brokers?
Expert Customs Brokers can help you with the application process
so that you are able to make the transition to CSA as seamlessly
as possible.
We can help
you make your company’s business case for CSA, assess your
readiness, summarize and flow chart your systems, and recommend
additional controls
you may want to
put in place. Expert Customs Brokers has invested in special CSA
approved software that allows us to take the trade data, adjustments,
trade
chain partners, and
revenue
reporting data from your system and report it to CBSA. We continue
to file the daily B3 information with CBSA and we prepare the RSF
for you
for your
monthly
payment to the government.
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To find out if this program is for you call our Expert Customs Brokers CSA
team at 1-877-362-3607 or e-mail us at CSA@ecb.com.
